You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Opening Orders - 2008
- Thread starter Don Bright
- Start date
I was caught on HAL today -$600....
I try to cancel everything after 3 minutes, but was on phone with a trader doing a hard to borrow locate, darn, LOL.
Back to "normal" hopefully tomorrow.
Don
I try to cancel everything after 3 minutes, but was on phone with a trader doing a hard to borrow locate, darn, LOL.
Back to "normal" hopefully tomorrow.
Don
Blocked 2/3 of my roster on news. One short fill on a small position, good for a gallon and a half of gas.
NYSE, Nasdaq Urged
To Cut Price Divergence
By AARON LUCCHETTI
April 30, 2008
A group of brokerage-firm traders, investors and other market participants are recommending that the New York Stock Exchange and Nasdaq Stock Market find ways to eliminate growing price discrepancies at the 9:30 a.m. Eastern time opening of trading.
In a report being released Wednesday, the Security Traders Association said that the two largest U.S. stock exchanges should work on "an appropriate and coordinated opening process" for stocks. The findings have important implications for investors, because shares of most U.S. companies trade on the Big Board, a unit of NYSE Euronext, or Nasdaq OMX Group Inc.'s Nasdaq.
The transformation of exchanges from brokerage-firm-owned clubs to for-profit companies has helped make trading cheaper and faster. It also has unleashed competitive forces that can make trading less orderly and more volatile.
Wall Street traders say problems have become more evident since Nasdaq started its own auction process last year to gain more business on the opening in NYSE- and American Stock Exchange-listed stocks.
"Divergent prices confuse investors," said John Giesea, president of the traders group. Chris Concannon, Nasdaq's executive vice president overseeing U.S. stock trading, said he is sympathetic to concerns about price discrepancies but isn't sure how coordinated pricing would work. He adds Nasdaq's approach is more transparent and fair.
NYSE officials said their system produces more accurate prices and is becoming more efficient and transparent. "We've got the largest liquidity pool, and we're making enhancements based on customer feedback," said Colin Clark, NYSE's vice president of strategic market analysis. The NYSE recently waived exchange fees charged to brokers making trades at the opening.
Write to Aaron Lucchetti at aaron.lucchetti@wsj.com
To Cut Price Divergence
By AARON LUCCHETTI
April 30, 2008
A group of brokerage-firm traders, investors and other market participants are recommending that the New York Stock Exchange and Nasdaq Stock Market find ways to eliminate growing price discrepancies at the 9:30 a.m. Eastern time opening of trading.
In a report being released Wednesday, the Security Traders Association said that the two largest U.S. stock exchanges should work on "an appropriate and coordinated opening process" for stocks. The findings have important implications for investors, because shares of most U.S. companies trade on the Big Board, a unit of NYSE Euronext, or Nasdaq OMX Group Inc.'s Nasdaq.
The transformation of exchanges from brokerage-firm-owned clubs to for-profit companies has helped make trading cheaper and faster. It also has unleashed competitive forces that can make trading less orderly and more volatile.
Wall Street traders say problems have become more evident since Nasdaq started its own auction process last year to gain more business on the opening in NYSE- and American Stock Exchange-listed stocks.
"Divergent prices confuse investors," said John Giesea, president of the traders group. Chris Concannon, Nasdaq's executive vice president overseeing U.S. stock trading, said he is sympathetic to concerns about price discrepancies but isn't sure how coordinated pricing would work. He adds Nasdaq's approach is more transparent and fair.
NYSE officials said their system produces more accurate prices and is becoming more efficient and transparent. "We've got the largest liquidity pool, and we're making enhancements based on customer feedback," said Colin Clark, NYSE's vice president of strategic market analysis. The NYSE recently waived exchange fees charged to brokers making trades at the opening.
Write to Aaron Lucchetti at aaron.lucchetti@wsj.com
Quote from Don Bright:
We try to not overcomplicate the whole process (most of us anyway, LOL)....remember, we're simply betting on selling when the Specialist sells, and buying when they buy....we cut the risk down by establishing a fair expected opening price from where the futures are trading...pretty basic, yet, all the being said, many have multiple beta groups and sector groups and all the rest...I prefer the simple method, especially for new people.
How much of the price movement to Fair Value is the specialist buying/selling and how much is other folks like funds etc rebalancing?
Quote from caementarius:
How much of the price movement to Fair Value is the specialist buying/selling and how much is other folks like funds etc rebalancing?
Nothing to do with reversal to mean or other involvement. We simply sell when the stock opens above our calculated selling price, or buy under our estimated buy price...when the stock gaps up or down. The Specialist will be on the same side when this happens.
Don